Wildwood staff recommend reserve policy review as council defers stormwater/parks tax and advances capital prioritization process

City finance staff reported to the Admin and Public Works Committee that Wildwood’s unrestricted general‑fund balance was unusually high at about 155 percent of annual operating expenditures at the end of 2024. The department recommended the council consider a formal reserve policy that sets a target and a floor—staff discussed a potential “Goldilocks zone” approach (example targets mentioned: 75% target with a 50% floor) while noting national guidance from the Government Finance Officers Association (GFOA) typically suggests a minimum of about two months (≈16.7%) of operating expenditures.

Finance staff (Mister Lee) explained the makeup of Wildwood revenue streams, including the city’s reliance on sales taxes and distributions from St. Louis County and the relative stability of utility-tax receipts. Staff noted the city has little long‑term debt and that much of the current unrestricted balance reflects…